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European Union

POTUS SOTU

In his State of the Union address on February 12, 2013, President Obama announced that the Administration plans to notify Congress of its intent to launch negotiations on a Transatlantic Trade and Investment Partnership with the European Union (EU). The President’s decision recognizes that the U.S.-EU economic relationship is already the world’s largest, accounting for one third of total goods and services trade and nearly half of global economic output.  The Transatlantic Trade and Investment Partnership is envisioned as an ambitious, high-standard trade and investment agreement that would provide significant benefit in terms of promoting U.S. international competitiveness, jobs, and growth.

The U.S. economic relationship with the EU is the largest and most complex in the world, generating goods and services trade flows of about $2.7 billion a day [2012 estimate] and transatlantic investment is directly responsible for roughly 6.8 million jobs [2010 estimate].  This enormous volume of transatlantic trade and investment promotes economic prosperity on both sides of the Atlantic and in the dozens of other countries that trade with the transatlantic partners.  The United States and the EU continue to pursue initiatives to create new opportunities for transatlantic commerce.

Key Trade and Investment Data and Trends

U.S. goods and private services trade with the EU totaled an estimated $1.06 trillion in 2013.  Exports totaled $471 billion; Imports totaled $535 billion.  The U.S. goods and private services trade deficit with the EU was $65 billion in 2013. 

The United States had $650 billion in total (two ways) goods trade with the European Union during 2013.  Goods exports totaled $262 billion; Goods imports totaled $387 billion.  The U.S. goods trade deficit with the EU was $125 billion in 2013.

Trade in private services with the EU (exports and imports) totaled an estimated $357 billion in 2013. Services exports were $209 billion; Services imports were $148 billion.  The U.S. services trade surplus with the EU was $60 billion in 2013.

Exports

The EU countries, together, would rank 2nd as an export market for the United States in 2013.

U.S. goods exports to the EU in 2013 were $262.3 billion down 1.3% ($3.4 billion) from 2012, but up 68% from 2003.  U.S. exports to the EU accounted for 16.6% of overall U.S. exports in 2013.

The five largest country markets were: Germany ($47.4 billion), United Kingdom ($47.4 billion), Netherlands ($42.7 billion), France ($32.0 billion), and Belgium ($31.7 billion).

The top export categories (2-digit HS) in 2013 were: Aircraft ($31.1 billion), Machinery ($29.9 billion), Mineral Fuel (oil) ($25.7 billion), Optic and Medical Instruments ($25.4 billion), and Pharmaceutical Products ($20.1 billion).

U.S. exports of agricultural products to EU countries totaled $11.9 billion in 2013. The EU countries together would rank 5th as an Ag Export Market for the United States.   Leading categories include: tree nuts ($2.3 billion), soybeans ($1.5 billion), soybean meal ($860 million), wine and beer ($649 million), and prepared food ($492 million).

U.S. exports of private commercial services* (i.e., excluding military and government) to the EU were an estimated $208.8 billion in 2013, up 4.9% ($9.7 billion) from 2012, and up 107% since 2003.  Other private services (business, professional and technical services and financial services), royalties and license fees, and travel categories accounted for most of U.S. services exports to the EU.

Imports

The EU countries together, would rank as the 2nd largest supplier of imports to the United States in 2013.

U.S. goods imports from the EU totaled $387.3 billion in 2013, up 1.5% ($5.7 billion) from 2012, and up 52% from 2003. U.S. imports from the EU accounted for 17.1% of overall U.S. imports in 2013.

The five largest country suppliers of imports are: Germany ($114.6 billion), United Kingdom ($52.6 billion), France ($45.3 billion), Italy ($38.7 billion), and Ireland ($31.6 billion).

The five largest categories in 2013 were: Machinery ($64.6 billion), Vehicles ($48.8 billion), Pharmaceuticals Products ($36.9 billion), Optic and Medical Equipment ($26.0 billion), and Organic Chemicals ($24.1 billion).

U.S. imports of agricultural products from EU countries totaled $17.6 billion in 2013. The EU countries together rank 3rd (to Canada and Mexico) as a supplier of Ag imports to the United States.  Leading categories include: wine and beer ($5.2 billion), essential oils ($2.2 billion), snack foods (including chocolate) ($1.3 billion), vegetable oils ($955 million), and processed fruits and vegetables ($939 million).

U.S. imports of private commercial services* (i.e., excluding military and government) were an estimated $148.4 billion in 2013, up 3.6% ($5.2 billion) from 2012, and up 77% since 2003.  The other private services (business, professional and technical services) category accounted for most of U.S. services imports from the EU.

Trade Balance

The U.S. goods trade deficit with the EU was $125.1 billion in 2013, a 7.9% increase ($9.1 billion) over 2012  The U.S. goods trade deficit with the EU accounted for 18.2+% of the overall U.S. goods trade deficit in 2013.

The United States has a private services trade surplus of $60.5 billion with the EU in 2013, up 8.1% from 2012.

Investment

U.S. foreign direct investment (FDI) in the EU (stock) was $2.2 trillion in 2012 (latest data available), a 10.0% increase from 2011.

U.S. FDI in the EU countries is primarily concentrated in the nonbank holding companies, finance/insurance, and manufacturing sectors.

EU FDI in the United States (stock) was $1.6 trillion in 2012 (latest data available), a 7.0% increase from 2010.

EU countries FDI in the U.S. is mostly in the manufacturing, finance/insurance, banking, wholesale trade, and information sectors.

Sales of services in EU by majority U.S-owned affiliates were $554.7 billion in 2011 (latest data available), while sales of services in the United States by majority EU-owned firms were $409.9 billion.

 

*NOTE: Refers to private services trade not including U.S. military sales, direct defense expenditures, and other miscellaneous U.S. government services. Agricultural and services trade   refers to EU 27 (excluding Croatia).

The Transatlantic Trade and Investment Partnership

T-TIP Info

Fact Sheet: Transatlantic Trade and Investment Partnership (T-TIP)

U.S. Objectives, U.S. Benefits In the Transatlantic Trade and Investment Partnership: A Detailed View

Additional Documents

Federal Register Notices

 

T-TIP Blogs

Public Forum Steers T-TIP Negotiations, Offers Window to Progress

Deputy Assistant USTR Christina Sevilla Highlights the benefits of US-EU trade for Midwestern Small Businesses

Stakeholder Consultations, Investment and the T-TIP

Cross Post: T-TIP On Our Tongues

Joint US-EU Document Highlights Benefits of the Transatlantic Trade and Investment Partnership (T-TIP) for Small and Medium-Sized Enterprises

In Case You Missed It: Opportunities for Small and Medium Sized Enterprises in the T-TIP

T-TIP: A Detailed View of Negotiating Objectives and Benefits and a New Opportunity to Provide USTR with Feedback

Cross Post: SBA, USTR Helping U.S. Small Business Exporters Expand Trade with European Union

USTR Hosts Stakeholder Engagement Events for the Third Round of the Transatlantic Trade and Investment Partnership (T-TIP) Negotiations

Ambassador Froman discusses the Transatlantic Trade and Investment Partnership at the Munich Security Conference

Five Things You Should Know About The Transatlantic Trade and Investment Partnership (T-TIP)

USTR Holds Series of Stakeholder Engagement Events at First Round of Transatlantic Trade and Investment Partnership Negotiations

Negotiations for the Transatlantic Trade and Investment Partnership Have Begun

 What They're Saying: The Transatlantic Trade and Investment Partnership (Part 1)

What They're Saying: The Transatlantic Trade and Investment Partnership (Part 2)

Other Bilateral Engagement

U.S.-EU Shared Principles for International Investment

The United States and the European Union (EU) together, under the auspices of the Transatlantic Economic Council, developed Shared Principles for International Investment. These principles reaffirms our joint commitment to open, transparent, and non-discriminatory international investment policies. International investment, both by American companies abroad and by foreign companies in the United States, benefits U.S. companies and American workers by creating high-paying jobs, boosting exports, and spurring innovation in the United States.

U.S.-EU Trade Principles For Information and Communication Technology Services 

A U.S. government negotiating team led by the Office of the United States Trade Representative reached agreement with the European Commission on April 4, 2011 on a set of non-binding trade-related principles for information and communication technology (ICT) services. The United States and the European Union (EU) will jointly promote the adoption of these principles by other countries.

The principles agreed to will, if widely adopted, support the global development of ICT services, including Internet and other network-based applications that are critical to innovative e-commerce, Internet search and advertising, data storage, and other services. The principles address transparency in legislation and regulation; open access to networks and applications; the free flow of information across borders; foreign investment in ICT sectors; facilitating the cross-border supply of services; the efficiency of spectrum allocation; the independence of regulatory authorities; the granting of operating licenses; interconnection between suppliers of basic public telecommunication services; and international cooperation. Each of the principles expresses an approach to policy and regulation in the ICT sector that is broadly shared by the United States and the EU.

 

U.S. Government Comments on the European Commission’s Public Consultation Document for Stakeholder Consultation Guidelines | U.S. Government Comments on the 2014 Revision of the European Commission Impact Assessment Guidelines Public Consultation Document